ACFE CFE-Law Exam - Topic 1 Question 12 Discussion

Actual exam question for ACFE's CFE-Law exam

Question #: 12
Topic #: 1

Ellis works for a business that filed for bankruptcy. The administrator presiding over the bankruptcy contacts Ellis and requests information regarding his employer's financial affairs Assuming the administrator has all of the powers recommended in the World Bank Principles for Effective Insolvency and Creditor/Debtor Regimes (World Bank Principles) which of the following is TRUE?

AThe administrator may only seek information regarding the bus ness that filed bankruptcy if Ellis consents to providing it.

BThe administrator has no power to obtain the information under any circumstances

CThe administrator may compel Ellis to provide the information despite Ellis's relationship to the business

DThe administrator may not obtain the information unless the business agrees in writing

Show Suggested Answer

Suggested Answer: C

by Arminda at Dec 26, 2022, 05:52 PM

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Lizbeth

4 months ago

D sounds too restrictive; the administrator has more authority.

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Lucina

4 months ago

A is incorrect; consent isn’t always needed.

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Cora

4 months ago

Wait, can they really compel someone? That seems intense!

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Nichelle

5 months ago

I disagree, it’s not that straightforward.

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Jules

5 months ago

C is definitely the right answer. Administrators have broad powers.

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Nenita

5 months ago

I believe the administrator can compel information, but I’m not completely confident. It seems like option C makes the most sense based on what we studied.

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Bernardine

5 months ago

I’m really uncertain about whether consent is needed. I thought it depended on the jurisdiction or specific laws.

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Jina

5 months ago

I think this is similar to a practice question we did on creditor rights. I feel like the administrator can get info without consent.

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Paris

5 months ago

I remember something about administrators having broad powers, but I'm not sure if they can compel individuals for information.

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Idella

5 months ago

Okay, I think I know the answer to this. If the specification of a rotating item is updated, all locations and assets referencing that item will be updated by default.

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Blair

5 months ago

Okay, let me think this through. PING is for testing connectivity, so that's not it. I'm leaning towards NETSTAT since that sounds like the right tool for listing network connections.

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Kyoko

5 months ago

I remember seeing a question about this before—wasn't the emphasis on shareholders being involved rather than just developers or designers?

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Kenny

5 months ago

Okay, I remember the instructor emphasizing that slides should be simple and use bullet points. I think the key is to use the slides to highlight the main points, not read them verbatim. I'll go with that strategy.

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